Los Angeles daily herald. [microfilm reel] (Los Angeles [Calif.]) 1884-1890, 1887-12-08
NATIONAL NEWS.
Annual Report of Secre-
tary Fairchild.
IMPORTANT POINTS RAISED.
Blaine interviewed Regarding
the Presidents Message
His Opinions.


nual report, submitted to Congress TO-
day, says that the total ordinary re
ceipts of the Government during the
year ending June 30, 1887, were $751;
403 900, and the total ordina y ex-
penditures 1915 $50 900, leaving with
the amount drawn from the cash bal
anco in the Treasury, $24 445 900
total surplus OF $50 033 600,
which was available for the redemption
of bonds Receipts for the year show
an increase OF S34,963 900 over the
year before, and tn expenditures an
increase Of $25 440 900.
For the present wear the revenues
are estimated at 1888 600 600, and ex-
penditmes s3l6.Sl7 900. leav ne an es-
timated surplus of S66, 1872, 900 on
June 80. 1888. The Secretary esti-
mates the surplus for the year 1889 at
$56,469 900.
REMEDIES FOR RELIEF.
The Secretary SAYS that the urgency
OF the question Of surplus of revenue
is SO great that it should demand the
of the government. The Secretary
mentions the following ways IN which
the receipts and expenditures of the
government may be eqnaized:
FirSt-Purchase OF the interest bear
ing debt OF the government.
Second-Larger expenditures by the
government for other p1rp srs than
purchase of bonds. SD that they shall
each year equal the taxes OF that year.
Tlird--Reduction Of revenue from
taxation to the amount actually re-
CURED to meet necessary expenses.
All these expedients have i'll common
the one merit OF preventing derang--
ment to business, which must follow
the boarding or locking up in the
treasury Of the circulating medium of
the people.
EXPEDIENTS DIsCussLD
In regari to the first plan he agrees
with what the President in his mes
sage said on the same subject.
The Secretary then says: 81 can
not believe that Congress will adott
the second expedient, and advise the
enlargement OF Government expenses
simply to expend the money raised
by taxation when the public veal
does not otherwise call ior expendi-
lures.
The reduction OF the revenue from
taxation is The onty fit remedy for the
evils which tlreaten the country.
This may he accomplished by various
ways one il to reduce or abolish in
ternal revenue taxation audiu favor of
this is the fact, that in small part OF
the Southern States the internal tax on
LIQUOR and tobacco is thought to be
oppressive and is odious to the people
OF these sections. and the further fact
that by its reduction the expenses Of
its collection might be somewhat re-
duced.
THE CHIEF CAUSE FOR PREJUDICE
Against this tax seems to be hat
there was no such tax before the war
for the Union and it is Looked upon as
a reminder of tie measures adopted
to raise money to carry on the war
and which ought not to he continued
in time of peace. AS to the expense OF
collecting the internal revenue | sug-
gest that the analgamation OF the
customs and internal revenue systems
is entirely feasible and | earnestly
commend this suggestion to the care
ful consideration OF Congress. To do
away with the whole revenue from
internal taxes at pre- ent would IL
minist, the revenues SO that it would
be necessary either to lay duties on
articles OF importation now free or to
suspend the sinking fund require
ments and also materially diminish
the other expenses OF the government
But it il not we'll either to abolish or
reduce the interal revenue taxation.
1t is the tax upon whisky, beer and
tobacco hitch 1 think is in very
small measure necessary to the health
or happiness OF mankind. This tax is
less burdensome and
THE LEAST UNJUST
OF all the taxes which the govern
meutltys or can lay Il ION the people,
and it should not be abolished.
There is left only the revenue from
custom taxation to be considered.
Here is VIII re a rcduction should he
made; and while reducing, advan-
tage should he taken of the oppor-
tunity 10 reform the abuses and
inequalities of the tariff laws, to add
to the free list as many articles as
possible, and to reduce the duties ON
every dutable article to the lowest
point poss BILE. But in ascertaining
these possibilities, the present situa-
ton of labor and business must always
be kept in mind.
AsTo THE PRESENT SURPLUS
After the question OF the annual sur
plus of revenues is disposed of, therr
still remains surplus of money
which is in the treasury to be con-
sidered. This surplus amounted on
December l to $50, 2SS 600, and will
probably amount to about Sl40 900, 900
on the Both of June next. One use
which can be made OF this money is
to diminish taxation to such an ex-
tent that the annual revenue will be
less for some years to come than the
appropriation. A portion of this
money could lie in the banks, where
it would be available for the business
Of the country, and l advise this
course. If, however, it is thought
better to attempt to buy bonds with
W hdNO cpCNlhi
authority given the Secretary OF the
Treasury to do SO
THE SILVER QUESTION.
The report shows that the circula-
ton OF standard silver dol ars has
increased $40 .465 900 during the past
year. In regard to this the Secretary
SAYS: One of the most interesting
facts shown by the foregoing state
ment is the decrease in the number of
standard silver dollars owned by the
government, and the increased use of
the same money by people in the
form Of silver certificates, and it is
evident that the future use of silver
dollars will be almost exclusively in
shat form. The law should be so